Oliver Mathenge
16 May 2008
Nairobi — Young people are yet to fully take advantage of funds set aside for their development.
According to Youth and Sports permanent secretary Kinuthia Murugu, the government is still holding up to Sh600 million of the Youth Enterprise Development Fund.
The PS told the Nation that Sh858 million had been disbursed from the kitty through financial intermediaries while close to Sh300 million has been disbursed through the constituencies.
Report
He added that the ministry would be releasing a comprehensive status report on the fun at the end of this month. The report will also take to account a survey the ministry has been carrying out to establish how the post-election violence affected businesses established through the fund.
The Sh1 billion fund was rolled out by the government in February last year to assist young people start up or improve their businesses. In November, the then Vice President Moody Awori announced that the Government had boosted the kitty with an extra Sh750 million meaning that the revolving fund now has Sh1.75 billion.
Disbursed
The PS said financial intermediaries had reported delays in loan repayments by young people. He however added that most of the entrepreneurs had given notice of delay especially due to the post-election chaos.
In December last year repayment of the youth fund stood at an impressive 98 per cent, he said.
"This has made some of the banks propose to give us Sh4 for every Sh1 of the fund that the is disbursed through them. This means that for every Sh100 million set aside for the fund Sh500 million will be available to young people," said Mr Murugu.
Meanwhile, the government on Thursday signed building contracts for thirty youth polytechnics. Each of the polytechnics will have two new workshops. The contractors have up to the end of August to complete the projects, said Mr Murugu who signed the contracts on behalf of the government.
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